13 Three Basic Marketing Price Structures/ServicesChallenges:1. Costs difficult to trace.2. Labor is more difficult toprice than materials.3. Costs may not equal the value that customers perceive the services are worth.Challenges:1. Small firms may charge toolittle to be viable.2. Prices may not reflect customer value.Cost-basedCompetition-basedDemand-based/valueChallenges:1. Monetary price must be adjusted to reflectthe value of non-monetary costs.2. Information on costs is less available tocustomers; hence, price may not be a central factor.

17 Other Pricing Tactics Single priceOffers all goods/services at the same priceTwo part pricingCharge two separate amounts for 1 productPrice LiningSeveral line items at specific price pointsLeader PricingSell product at near or below costBait PricingLure customers through false or misleadingprice advertisingOdd-Even PricingOdd-number prices imply bargainEven-number prices imply qualityPrice BundlingCombining two or more products in asingle package